While Dean Foods Co. has garnered attention in recent days as its ex-chairman is said to be part of an insider-trading investigation, the largest U.S. milk processor faces another challenge: how to win back market share.
In May, the company began selling DairyPure, which it says is the first nationally branded fresh white milk tested for antibiotics and containing no artificial growth hormones. Although it's too early to project the long-term impact of DairyPure, the company is "pleased" with its performance so far, Chief Executive Gregg A. Tanner said Monday.
"Our national brand fills a void in the dairy industry," Tanner said.
Dallas-based Dean is trying to counter the growth of organic and soy- or almond-based milk substitutes. Another problem is that Americans have been steadily drinking less milk in recent years amid competition from plant-based substitutes, while ready-to-eat cereal sales have been weak, said Ken Shea, a Bloomberg Intelligence analyst. Dean's share of U.S. fluid milk volumes fell to 35 percent in the second quarter from 36 percent a year ago, the company said Monday.
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